Robeco Biodiversity Equities I USD

David Thomas is Portfolio Manager of the Robeco Biodiversity Equities strategy and member of the Thematic Investing team. Prior to joining Robeco in 2022, he was a portfolio manager at Ellerston Capital, managing multiple strategies, including a fund for one of the world’s largest sovereign wealth asset owners. David brings 29 years of experience in financial markets having worked for global corporations, including Price Waterhouse Coopers, Macquarie Bank, Morgan Stanley and CLSA. His expertise in equity markets with special focus on the consumer and IT sectors has been honed over multiple roles, both in Sydney and London. David holds a Bachelor of Business from Swinburne University and successfully completed the leadership program at Harvard Business School.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.01% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund's sustainable investment objective is to support the sustainable use of natural resources and ecosystem services that help to reduce Biodiversity threats or restore natural habitats. This is achieved by incorporating sustainability considerations in the investment process by the means of a target universe definition, exclusions, ESG integration, and voting. The fund only invests in companies that have a significant thematic fit as per Robeco's thematic universe methodology. Through screening on both Robeco's internally developed SDG Framework and Robeco’s exclusion policy, the fund does not invest in issuers that have a negative impact on the SDGs, are in breach of international norms or where products have been deemed controversial. Financially material ESG factors are integrated in the bottom-up fundamental investment analysis to assess existing and potential ESG risks and opportunities. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policyThe following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI World Index TRN.

The 'Trump Trade' dominated most of October as markets began to price in a GOP sweep. Strong US equities, a strong USD and weak bonds were the order of the month, with the rise in yields being particularly surprising as the US 10-year jumped more than 50 bps, reaching 4.3%. US equities gave up their gains on the last day of the month when disappointing results from Meta and Microsoft led to a sharp sell-off in the tech sector. The S&P 500 fell 1%, while the NASDAQ dropped 0.5%. Small caps continued to struggle, with the Russell 2000 falling 1.5%, leaving it more than 1,100 bps behind the S&P 500 year-to-date. European markets fell across the board, with France again proving to be the laggard, still in the red for the calendar year compared to most equity markets, which are up double digits over the same period. Japan was the strongest market globally in October, up 3%, while China's wild ride continued, ending the month down 3%.

Based on transaction prices, the fund's return was -4.49%. The fund's performance for the month was behind the general market, albeit well ahead of the investable universe. Our best-performing stocks for the month included Sprouts Farmers Market, DS Smith and Valmont Industries. Sprouts continued its stellar run delivering an earnings surprise at both the top and bottom line, with customers continuing to choose healthier options. DS Smith jumped 18% for the month, as its US suitor International Paper reported strong results and a fresh cost savings plan. Valmont's operating momentum continued to build as strength in its infrastructure division offset feared weakness in agriculture

Much will be made of the presidential election and what it means for markets. We will leave it to others to chew on the implications; all we are hoping for is a decisive result. If that occurs, we believe equity markets will continue to perform as central banks continue to trim rates.